1. What is the Interest Calculation?

The simple interest formula calculates monthly interest for Maybank credit card debt compared to savings account interest. It helps you understand how much interest you'll pay or earn each month.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal balance (MYR)
• \( R \) — Monthly interest rate (APR / 12)
• \( I \) — Monthly interest (MYR)

Explanation: For credit cards, the typical Maybank APR is 18% (0.18/12 monthly). For savings, the rate is approximately 1% (0.01/12 monthly).

3. Importance of Interest Calculation

Details: Understanding monthly interest helps in financial planning, comparing credit card costs versus savings benefits, and making informed decisions about debt management.

4. Using the Calculator

Tips: Enter your principal balance in MYR and select whether you're calculating credit card interest (what you'll pay) or savings interest (what you'll earn).

5. Frequently Asked Questions (FAQ)

Q1: Why is credit card interest higher than savings?
A: Credit cards charge higher rates because they're unsecured debt, while savings accounts pay interest to incentivize deposits.

Q2: Are these the exact Maybank rates?
A: These are typical rates; actual rates may vary based on your specific Maybank products and current promotions.

Q3: Does this include compounding?
A: No, this shows simple monthly interest. Actual credit card interest may compound daily.

Q4: How can I reduce credit card interest?
A: Pay your balance in full each month, transfer to lower-rate cards, or negotiate with Maybank for better terms.

Q5: Are savings interest rates fixed?
A: No, savings rates can change based on Bank Negara Malaysia's OPR and Maybank's policies.